Spain’s central bank governor, Pablo Hernandez de Cos, has warned that further increases in house prices in Spain in 2022 after a sharp rise in the first quarter could lead to an overvaluation, calling for a closer look at the trend in the coming quarters.
Real estate prices in Spain increased 8.5% in the first quarter of 2022, the largest increase since the third quarter of 2007.
De Cos said that the indications for imbalances in housing prices show slight signs of overvaluation since the beginning of 2020.
“These indicators increased slightly in 2021 and could be further strengthened if the rise in house prices observed in the first quarter of 2022 is consolidated.
However, De Cos said that imbalances in real estate remained far from the levels observed before the real estate bubble burst 15 years ago, plunging the banking system into crisis.
Source: Capital
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